ISBC 2017 Form 10-K & 2018 Proxy Statement

FORM 10-K The following table sets forth fixed- and adjustable-rate loans at December 31, 2017 that are contractually due after December 31, 2018. Due After December 31, 2018 Fixed Adjustable Total (In thousands) Commercial loans: Multi-family loans $2,386,500 $4,541,912 $ 6,928,412 Commercial real estate loans 1,412,058 2,592,645 4,004,703 Commercial and industrial loans 914,023 225,244 1,139,267 Construction loans 91,031 — 91,031 Total commercial loans 4,803,612 7,359,801 12,163,413 Residential mortgage loans 3,367,806 1,307,462 4,675,268 Consumer and other loans: Home equity loans 136,244 — 136,244 Home equity credit lines — 119,162 119,162 Other 159 260,895 261,054 Total consumer and other loans 136,403 380,057 516,460 Total loans $8,307,821 $9,047,320 $17,355,141 Multi-family Loans. At December 31, 2017, $7.80 billion, or 38.8%, of our total loan portfolio was comprised of multi-family loans. Our policy generally has been to originate multi-family loans in New York, New Jersey and surrounding states. The multi-family loans in our portfolio consist of both fixed-rate and adjustable-rate loans, which were originated at prevailing market rates. Multi-family loans are generally five to fifteen year term balloon loans amortized over fifteen to thirty years. Commercial Real Estate Loans . At December 31, 2017, $4.55 billion, or 22.6%, of our total loan portfolio was commercial real estate loans. We originate commercial real estate loans in New Jersey, New York and surrounding states, which are secured by industrial properties, retail buildings, office buildings and other commercial properties. Commercial real estate loans in our portfolio consist of both fixed-rate and adjustable- rate loans which were originated at prevailing market rates. Commercial real estate loans are generally five to fifteen year term balloon loans amortized over fifteen to thirty years. Commercial and Industrial Loans. At December 31, 2017, $1.63 billion, or 8.1%, of our total loan portfolio was commercial and industrial loans. We offer a wide range of credit facilities to commercial and industrial clients throughout our geographic footprint. Our credit offerings are lines of credit, fixed-rate and adjustable-rate term loans and letters of credit. A significant portion of our commercial and industrial loans are secured by commercial real estate and are primarily on properties and businesses located in New Jersey and New York. Other collateral for these types of loans can be comprised of real estate and/or a lien on the general assets, including inventory and receivables of the business, and in many cases are further supported by a personal guarantee of the owner. As the Company and our footprint have grown, we have broadened our product offerings to create certain commercial and industrial lending subspecialties, including expanded lending to the healthcare industry. Included in the Company’s commercial and industrial loans were $108.1 million of loans to Co-operative housing corporations and groups (“Co-Op loans”). Construction Loans. At December 31, 2017, we held $416.9 million in construction loans representing 2.1% of our total loan portfolio. We offer loans directly to builders and developers on income-producing properties and residential for-sale housing units. Generally, construction loans are structured to have a three-year term and are made in amounts of up to 70% of the appraised value of the completed property, or the actual cost of the improvements. Funds are disbursed based on inspections in accordance with a schedule reflecting the completion of portions of the project. Construction financing for units to be sold require a pre-sale contract or we will limit the amount of speculative building without a sales contract. 7